Does the market recognize corporate social responsibility?

Main Article Content

Juan Camilo Sanchez-Lopez
Jesús María Godoy Bejarano


This paper examines the impact on the market value from novelties in Dow Jones Sustainability Index (DJSI) that is prepared annually by RobecoSAM. Based on the analysis of 77 events of 13 Colombian companies in the period 2009-2018, it shows that DJSI-related events generate insignificant abnormal returns to shareholders, and it proposes as an explanation the exiguous disclosure effort by Colombian companies of this type of events.


Download data is not yet available.


Metrics Loading ...

Article Details

How to Cite
SANCHEZ-LOPEZ, J. C.; GODOY BEJARANO, J. M. . Does the market recognize corporate social responsibility? . RAE - Revista de Administracao de Empresas , [S. l.], v. 62, n. 2, p. 1–16, 2022. DOI: 10.1590/S0034-759020220205. Disponível em: Acesso em: 14 apr. 2024.


Adamska, A., & Dabrowski, T. (2016). Do investors appreciate information about corporate social responsibility? Evidence from the polish equity market. Engineering Economics, 27(4) 364-372. doi: 10.5755/

Arya, B., & Zhang, G. (2009). Institutional reforms and investor reactions to CSR announcements: evidence from an emerging economy. Journal of Management Studies, 46(7), 1089-1112. doi: 10.1111/j.1467-6486.2009.00836.x

Baden, D. A., Harwood, I. A., & Woodward, D. G. (2009). The effect of buyer pressure on suppliers in SMEs to demonstrate CSR practices: An added incentive or counter productive? European Management Journal, 27(6), 429-441. doi: 10.1016/j.emj.2008.10.004

Banz, R. W. (1981). The relationship between return and market value of common stocks. Journal of Financial Economics, 9(1), 3-18. doi: 10.1016/0304-405X(81)90018-0

Bardos, K. S., Ertugrul, M., & Gao, L. S. (2020). Corporate social responsibility, product market perception, and firm value. Journal of Corporate Finance, 62, 101588. doi: 10.1016/j.jcorpfin.2020.101588

Barnett, M. L. (2007). Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. Academy of Management Review, 32(3), 794-816. doi: 10.5465/amr.2007.25275520

Barnett, M. L., & Salomon, R. M. (2006). Beyond dichotomy: The curvilinear relationship between social responsibility and financial performance. Strategic Management Journal, 27(11), 1101-1122. JSTOR.

Branco, M. C., & Rodrigues, L. L. (2006). Corporate social responsibility and resource-based perspectives. Journal of Business Ethics, 69(2), 111-132. doi: 10.1007/s10551-006-9071-z

Brooks, C. (2014). Introductory econometrics for finance (3rd ed.). Cambridge: Cambridge University Press.

Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48. doi: 10.1016/0007-6813(91)90005-G

Cellier, A., & Chollet, P. (2016). The effects of social ratings on firm value. Research in International Business and Finance, 36, 656-683. doi: 10.1016/j.ribaf.2015.05.001

Chang, K., Shim, H., & Yi, T. D. (2019). Corporate social responsibility, media freedom, and firm value. Finance Research Letters, 30, 1-7. doi: 10.1016/

Chen, Y.-S., & Chang, C.-H. (2013). Greenwash and green trust: The mediation effects of green consumer confusion and green perceived risk. Journal of Business Ethics, 114(3), 489-500. doi: 10.1007/s10551-012-1360-0

Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), 1–23. doi: 10.1002/smj.2131

Friedman, M. (1970). The Social Responsibility of Business Is to Increase Its Profits. In W. C. Zimmerli, M. Holzinger, & K. Richter (Eds.), Corporate Ethics and Corporate Governance (pp. 173–178). Springer Berlin Heidelberg.

Cho, S. J., Chung, C. Y., & Young, J. (2019). Study on the relationship between CSR and financial performance. Sustainability, 11(2), 343. doi: 10.3390/su11020343

Chung, C. Y., Jung, S., & Young, J. (2018). Do CSR activities increase firm value? Evidence from the Korean market. Sustainability, 10(9), 3164. doi: 10.3390/su10093164

Corrado, C. J. (2011). Event studies: A methodology review. Accounting & Finance, 51(1), 207-234. doi: 10.1111/j.1467-629X.2010.00375.x

Crisóstomo, V. L., Freire, F. de S., & Vasconcellos, F. C. de. (2011). Corporate social responsibility, firm value and financial performance in Brazil. Social Responsibility Journal, 7(2), 295-309. doi: 10.1108/17471111111141549

De Jong, M. D. T. De, Harkink, K. M., & Barth, S. (2018). Making green stuff? Effects of corporate greenwashing on consumers. Journal of Business and Technical Communication, 32(1), 77-112. doi: 10.1177/1050651917729863

De Wet, W. A. de. (2004). The role of asymmetric information on investments in emerging markets. Economic Modelling, 21(4), 621-630. doi: 10.1016/j.econmod.2003.09.002

Duarte, J. B. D., & Pérez-Iñigo, J. M. M. (2014). Comprobación de la eficiencia débil en los principales mercados financieros latinoamericanos. Estudios Gerenciales, 30(133), 365-375. doi: 10.1016/j.estger.2014.05.005

Durand, R., Paugam, L., & Stolowy, H. (2019). Do investors actually value sustainability indices? Replication, development, and new evidence on CSR visibility. Strategic Management Journal, 40(9), 1471-1490. doi: 10.1002/smj.3035

El Ghoul, S., Guedhami, O., Kwok, C. C. Y., & Mishra, D. R. (2011). Does corporate social responsibility affect the cost of capital? Journal of Banking & Finance, 35(9), 2388-2406. doi: 10.1016/j.jbankfin.2011.02.007

Flammer, C. (2012). Corporate social responsibility and shareholder reaction: The environmental awareness of investors. Academy of Management Journal, 56(3), 758-781. doi: 10.5465/amj.2011.0744

Freeman, R. E. (1999). Response: Divergent stakeholder theory. The Academy of Management Review, 24(2), 233-236. doi: 10.2307/259078

Friedman, M. (1970). The social responsibility of business is to increase its profits. In W. C. Zimmerli, M. Holzinger, & K. Richter (Eds.), Corporate ethics and corporate governance (pp. 173-178). Berlin. Springer Berlin Heidelberg.

González, M., Guzmán, A., Téllez, D. F., & Trujillo, M. A. (2021). What you say and how you say it: Information disclosure in Latin American firms. Journal of Business Research, 127, 427-443. doi: 10.1016/j.jbusres.2019.05.014

Hawn, O., Chatterji, A. K., & Mitchell, W. (2018). Do investors actually value sustainability? New evidence from investor reactions to the Dow Jones Sustainability Index (DJSI). Strategic Management Journal, 39(4), 949-976. doi: 10.1002/smj.2752

Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1), 405-440. doi: 10.1016/S0165-4101(01)00018-0

Karim, K., Suh, S., & Tang, J. (2016). Do ethical firms create value? Social Responsibility Journal, 12(1), 54-68. doi: 10.1108/SRJ-09-2014-0127

Kelly, B., & Ljungqvist, A. (2012). Testing asymmetric-information asset pricing models. The Review of Financial Studies, 25(5), 1366-1413. doi: 10.1093/rfs/hhr134

Kramer, M. R., & Porter, M. E. (2006). Estrategia y sociedad: El vínculo entre ventaja competitiva y responsabilidad social corporativa. Harvard Business Review, 84(12), 42-56. Recuperado de

Li, D., Xin, L., Chen, X., & Ren, S. (2017). Corporate social responsibility, media attention and firm value: Empirical research on Chinese manufacturing firms. Quality & Quantity, 51(4), 1563-1577. doi: 10.1007/s11135-016-0352-z

McGuire, J. B., Sundgren, A., & Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal, 31(4), 854-872. doi: 10.5465/256342

McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. The Academy of Management Review, 26(1), 117. doi: 10.2307/259398

Montiel, I., Husted, B. W., & Christmann, P. (2012). Using private management standard certification to reduce information asymmetries in corrupt environments. Strategic Management Journal, 33(9), 1103-1113. doi: 10.1002/smj.1957

Netto, S. V. de F., Sobral, M. F. F., Ribeiro, A. R. B., & Soares, G. R. da L. (2020). Concepts and forms of greenwashing: A systematic review. Environmental Sciences Europe, 32(1), 19. doi: 10.1186/s12302-020-0300-3

Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24(3), 403-441. doi: 10.1177/0170840603024003910

Pérez, A., López-Gutiérrez, C., García-De Los Salmones, M. D. M., & San-Martín, P. (2020). Stakeholder salience, positive CSR news and the market value of banks. Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad, 49(4), 483–502. doi: 10.1080/02102412.2019.1681718

Porter, M. E., & Kramer, M. R. (December, 2006). Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92. Recuperado de

RobecoSAM. (2019). SAM Corporate Sustainability Assessment Informe de progreso de América Latina 2019. Recuperado de

Robinson, M., Kleffner, A., & Bertels, S. (2011). Signaling sustainability leadership: Empirical evidence of the value of DJSI membership. Journal of Business Ethics, 101(3), 493-505. doi: 10.1007/s10551-011-0735-y

Rodríguez-Salcedo, C. G. (2020, marzo 9). El Presupuesto General de la Nación 2020 se calculó con un precio del Brent en US$67. Recuperado de

Ruiz-Dávila, B. D. R., & Muñoz, G. G. (2020). Hipótesis de mercados eficientes y estrategias de inversión en el MILA: 2014-2019. Análisis Económico, 35(90), 67-90. Recuperado de

Searcy, C., & Elkhawas, D. (2012). Corporate sustainability ratings: An investigation into how corporations use the Dow Jones Sustainability Index. Journal of Cleaner Production, 35, 79-92. doi: 10.1016/j.jclepro.2012.05.022

Servaes, H., & Tamayo, A. (2013). The impact of corporate social responsibility on firm value: The role of customer awareness. Management Science, 59(5), 1045-1061. doi: 10.1287/mnsc.1120.1630

Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355-374. doi: 10.2307/1882010

Sprinkle, G. B., & Maines, L. A. (2010). The benefits and costs of corporate social responsibility. Business Horizons, 53(5), 445-453. doi: 10.1016/j.bushor.2010.05.006

Su, W., Peng, M. W., Tan, W., & Cheung, Y.-L. (2016). The signaling effect of corporate social responsibility in emerging economies. Journal of Business Ethics, 134(3), 479-491. doi: 10.1007/s10551-014-2404-4

Vargas, L. (2016). Corporate Social Responsibility and Financial Performance: GIC’s Share Prices Value Impact – Event Study. In Crowther, David & Seifi, Shahla (Eds.), Corporate Responsibility and Stakeholding (Vol. 10, pp. 165–177). Emerald Group Publishing Limited.

Waddock, S. A., & Graves, S. B. (1997). The Corporate Social Performance–Financial Performance Link. Strategic Management Journal, 18(4), 303–319. Recuperado de

Wang, Y.-S., & Chen, Y.-J. (2017). Corporate social responsibility and financial performance: Event study cases. Journal of Economic Interaction and Coordination, 12(2), 193-219. doi: 10.1007/s11403-015-0161-9